President Carter will name Cleveland businessman Milt Wolf ambassador to Austria and career diplomat Charles W. Bray III deputy director of the U.S. Information Agency, administration sources said yesterday.

Carter has reportedly settled on former Gov. John C. West of South Carolina as his envoy to Saudi Arabia, according to other sources.

Wolf is a liberal businessman who is in his early 50s and is completing work on a doctorate in economics. He is a longtime supporter of Sen. John Glenn (D-Ohio) and helped Carter raise substantial funds for the Ohio primary last year.

Bray, a deputy assistant secretary of state, served as spokesman for the State Department under former Secretary William P. Rogers, but asked to be transferred rather than work under Henry Kissinger.

If confirmed for the USIA job, Bray would serve under another career diplomat, John E. Reinhardt, the new director of the government propoganda agency.

West is a friend of President Carter from their days together as moderate southern governors. They were both governors from 1970 to 1974, and West was an early backer of Carter's presidential bid.

Since leaving office he has been involved in several business deals with the Arabs, and while still governors he led two trade missions from South Carolina to Saudi Arabia.